26th Mar 2014 10:02
LONDON (Alliance News) - Chime Communications PLC Wednesday swung into a pretax loss for 2013, as it saw a lower performance in its Sports and Entertainment division "as expected", due to the absence of the benefit of the 2012 London Olympic Games.
The communications and sports marketing company raised its total dividend to 7.34 pence from 7.24 pence.
It swung into a pretax loss of GBP4.7 million in 2013 from a pretax profit of GBP2.5 million in the previous year, as revenue declined to GBP299.2 million from GBP344.2 million, hampered by the tough Olympic comparables and higher operating expenses.
Chime had an average fee per client of GBP99,000 for 2013, up from GBP91,000 in the previous year.
Sports and Entertainment revenue declined to GBP55.6 million from GBP65.9 million in 2012. The company is seeking to even out revenues in odd-numbered calender years, acquiring three businesses during the year that do not have income linked with the Olympics and World Cups. All three acquisitions are performing well, Chime said.
Advertising and Marketing revenues rose to GBP65.6 million from GBP54.2 million, boosted improved margin, which rose 4 percentage points to 12% from 8%.
Chime said that momentum was building towards the 2014 FIFA World Cup and 2014 Commonwealth Games, and expects to the value of the contracts it has won so far to exceed the operating income it achieved from the 2012 Olympics.
The company will continue to focus on improving margins and growing both organically and through acquisitions during 2014. It cautioned that, although market conditions were improving in many countries, the continued strengthening of sterling could cause some adjustment to its 2014 reported results.
Chime noted that advertising giant WPP Group PLC has stated that it was its intention to explore a sale of their stake in Chime in November 2013. Chime said it has not received any notice of any share disposals by WPP. WPP has a 17.63% holding in the company.
Shares in Chime were trading down 6.3% at 336.50 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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